Barely has the dust settled on the second wave of digital innovation, and now the third wave has begun – with even greater potential to change society forever. 

The Internet of Things, blockchain technology, robotics and artificial intelligence are just some of the buzzwords currently making headlines in tech news – and they’re all part of our burgeoning digital economy. 

But before we dive headfirst into this new world, let’s take a moment to debunk five myths about the digital economy that are putting governments and organisations behind the curve.

Myth #1: Digital economy is unsustainable

A digital economy is one that involves or relies on technology to conduct and run a business in the online world, such as e-commerce, e-sports, e-entertainment, digital marketing etc. 

This type of economy is often believed to be unsustainable and the cause of the decline in traditional businesses and economy.

This is not true because, in reality, the digital economy enables governments and firms to expand their reach by offering services online.

This gives SMEs a platform to grow their businesses at a lower cost compared with having a physical store.

Myth #2: Digital economy will leave people jobless

There is no doubt that new technologies will disrupt old ones. 

It happened when the industrial revolution swept away rural communities, and it will happen again when robots replace drivers, accountants and many other professions. 

However, past experience shows that it results in new types of jobs, so there’s nothing to worry about. 

After all, demand for services like carpentry or electricians did not decrease after introducing technology-driven alternatives. 

Administration and business owners will continue to need human capability. They will pay workers as long as they are productive enough to justify hiring them instead of machines or automation. 

There may be fewer job opportunities at low wages available. 

Still, those willing to learn something new can gain valuable knowledge and skills that can later be used for more lucrative offers.

Myth #3: Digital products are perfect and don’t need maintenance

There’s a widespread belief that digital products and services are always perfectly made: no bugs, no errors, no mistakes. 

The reality is that software and hardware manufacturing is very complex, so it’s almost impossible to create a product without errors and bugs.

And the thing is that citizens and consumers alike increase their demands and expectations faster than ever before.

Myth #4: The digital economy lacks security and privacy

Digital technologies have a huge impact on our lives.

It also improves the quality of them with many benefits, such as easier access to information, better e-health services, fast communication with friends and family etc. 

However, there are still concerns related to privacy and security in the digital environment. 

Whilst these challenges exist, it is also true that technology development has made it possible for us to control our security and privacy more than ever before.

Besides, there are several advanced tools that governments and businesses can use to protect data from being stolen or tampered with.

Myth #5: The digital economy lacks opportunities for small businesses or developing countries

The global digital economy is projected to grow to 53.3 trillion U.S. dollars in 2023 (more than half of the overall nominal GDP), according to Statista.

This presents huge opportunities for businesses in both developed and developing countries.

Smaller firms and developing governments benefit from the democratisation of technology that enables them to compete in the international arena.